Recent HAFA Supplemental Directive 12-02 brought several updates for short sales that are NOT Fannie Mae or Freddie Mac insured.   Here are the key updates:

  1.  Time Frame for HAFA short sales has been extended to December 31, 2013 for the short sale to be initiated. (Transaction must close by 9-30-2014)
  2. Occupancy requirements have been removed.    No longer does the property have to be owner occupied.  The only restriction is that it cannot be owned or secured by a business entity.
  3. The maximum amount allowed to pay off second liens have been increased from $6,000 to $8,500.
  4. The $3000 HAFA relocation assistance will only be paid if the property is occupied at the time the HAFA agreement is executed.  So either the owner or a tenant occupying the property can receive relocation assistance, but they must agree to vacate prior to closing.

Note these new updates do not apply to Fannie Mae and Freddie Mac HAFA short sales. 

Click here for more information on the HAFA program.   Click here for Fannie Mae HAFA information and here for Freddie Mac.

If you are considering a short sale and would like to know if you might be eligible for this program and the $3000 relocation assistance it offers contact me today.